CC MEETING: November 17, 2015
DATE: November 10, 2015
TO: Leonard Martin, City Manager
FROM: Chrystal Davis, Director, Workforce Services
Title
Consider A Resolution Authorizing The City Manager To Sign An Application With Berkley To Provide Stop Loss Coverage For The City’s Benefit Plan In An Amount Not To Exceed $660,000.00.
Body
BACKGROUND:
The City’s health benefit program is self-funded. The City purchases Stop-Loss Coverage both at an individual and an aggregate level for cost containment purposes. The City recently released a Request for Proposals for Stop Loss coverage. The City received proposals from four (4) carriers with one being our current carrier. The City requested the specific level coverage at $225,000 per individual. A quote received from Berkley appeared to be the best option based on the exclusion of any lasers, deductible pricing and coverage.
FINANCIAL IMPLICATIONS:
The annual premium cost to the City will not exceed $660,000 with an individual stop loss annual deductible of $225,000. In comparison to last year, the annual premium decreased by approximately $89,000. The funds for this coverage come out of the employee health trust and not the general fund.
STAFF RECOMMENDATION/ACTION DESIRED:
The staff recommends that the Berkley proposal is the best option for the City for the next plan year. Staff recommends adoption of the attached resolution authorizing the City Manager to sign an application with Berkley to provide Stop Loss coverage for the City’s benefit plan.